8th Jul 2021 10:23
(Alliance News) -Â Shares in Deliveroo PLC rose on Thursday after it raised full-year gross transaction value guidance, though it did caution on margins.
The recently listed food delivery platform was up 3.3% at 331.30 pence in London on Thursday, though shares remain well below Deliveroo's 390p IPO price.
Gross transaction value in the second quarter of 2021 was up 76% year-on-year to GBP1.74 billion, the company said, with orders rising 88% to 78 million. UK & Ireland gross transaction value rose 87% to GBP921 million while the international segment posted 65% growth to GBP818 million.
"Deliveroo has seen continued strong growth and consumer engagement in H1, and as a result of that plus increased expectations for H2 is increasing the guidance for full year annual GTV growth from between 30% to 40% to between 50% to 60%," it said.
Deliveroo also confirmed its full-year gross profit margin guidance, though it expects this to be in the lower half of its previously communicated range. It previously said it was targeting gross profit margins of 7.5% to 8.0%.
The company explained that it is accelerating investments and it expects average order value to revert to its pre-Covid level.
Gross transaction value for the first half of GBP3.39 billion, up 99% year-on-year, will be followed by GBP2.93 billion for the second half, according to the midpoint of Deliveroo's guidance. This second half figure would represent a slower annual growth rate of 24%.
By Lucy Heming;Â [email protected]
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